Effective Tax Rate and Top-Up Tax

This is the fourth step in the Pillar Two calculation. It consists of the following functions that calculate the substance-based income, excess profit, jurisdiction Top-up tax and Top-up amount per company:

Calculate IIR ETR, IFRS ETR and Top-Up Tax Percentage

This Join function is used to calculate ETR, IFRS and Top-up tax percentages.

In the header of the Join function, the following settings were configured:

  • Join Type is set to the default value “Implicit Fields”. This way, all fields from the different data sources are included automatically.

  • Result Handling is set to “Include enriched data” as the output results should only include data records on which the rule (IIR or UTPR) was applied.

  • Suppress Initial Results is set to “No” to ensure that it can still be viewed later in reporting.

  • Include Original Input Data is set to “No” as only produced rows are needed for further calculations.

  • Auto Filling is set to “No” as all fields are assumed to be filled and left outer joins or lookups are not required to complete the calculation.

Calculate Substance-Based Carve-Out Amounts

This Join function is used to calculate substance-based carve-out amounts.

In the header of the Join function, the following settings were configured:

  • Join Type is set to “Explicit Fields”. This way, only specified fields from the different data sources are included.

  • Result Handling is set to “Include enriched data” as the output results should only include data records on which the rule (IIR or UTPR) was applied.

  • Suppress Initial Results is set to “No” to ensure that it can still be viewed later in reporting.

  • Include Original Input Data is set to “No” as only produced rows are needed for further calculations.

  • Auto Filling is set to “No” as all fields are assumed to be filled and left outer joins or lookups are not required to complete the calculation.

Excess Profit and Jurisdiction Top-Up Tax Amount

This Join function is used to calculate the excess profit and total jurisdiction Top-up tax.

In the header of the Join function, the following settings were configured:

  • Join Type is set to the default value “Implicit Fields”. This way, all fields from the different data sources are included automatically.

  • Result Handling is set to “Include enriched data” as the output results should only include data records on which the rule (IIR or UTPR) was applied.

  • Suppress Initial Results is set to “No” to ensure that it can still be viewed later in reporting.

  • Result Model Table is set to “Jurisdiction Top-Up Tax and Election to Apply the De-Minimis”, that means that results are written in the define model table.

  • Include Original Input Data is set to “No” as only produced rows are needed for further calculations.

  • Auto Filling is set to “No” as all fields are assumed to be filled and left outer joins or lookups are not required to complete the calculation.

Calculate Top-Up Tax Amount per Company

This Join function is used to calculate the Top-up tax amount per company based on the ownership ratio.

In the header of the Join function, the following settings were configured:

  • Join Type is set to the default value “Implicit Fields”. This way, all fields from the different data sources are included automatically.

  • Result Handling is set to “Include enriched data” as the output results should only include data records on which the rule (IIR or UTPR) was applied.

  • Suppress Initial Results is set to “No” to ensure that it can still be viewed later in reporting.

  • Include Original Input Data is set to “No” as only produced rows are needed for further calculations.

  • Auto Filling is set to “No” as all fields are assumed to be filled and left outer joins or lookups are not required to complete the calculation.